The 2024 supply chain landscape is witnessing a significant shift
towards brownfield warehousing, states the report titled
'Navigating Warehouse Space Challenges in 2024: Unlocking the Value
of Brownfield Warehouses' from Bart De Muynck, LLC, a consultancy
providing strategic advice on supply chains including focuses on
strategy, leadership and technology. FORTNA, a leading automation
and software company for the full logistics value chain, is leading
the charge by automating brownfield processes to enhance cost
savings and efficiencies.
During the pandemic, there was a substantial investment push for
greenfield construction to accommodate the surge of inventory
entering the United States. However, with vacancy rates decreasing
and the high costs associated with greenfield projects, companies
are now turning to retrofitting existing warehouses through
brownfield projects to meet current consumer behavior and industry
developments.
Bart De Muynck, CEO of Bart De Muynck, LLC, and industry expert,
emphasized the importance of brownfield projects, stating,
"Brownfield projects are crucial to limiting warehousing costs
going forward. FORTNA sits at the cutting edge of warehouse
automation to allow for labor costs and efficiencies to be further
enhanced."
"FORTNA is on the precipice of brownfield warehouse automation,"
said Jeff Cashman, SVP of Corporate Development at FORTNA. "Our
expertise in warehouse execution systems and warehouse automation
enables companies to unlock the full potential of brownfield
warehouses."
The report states that in 2023, the United States saw a 25%
decrease in new warehouse construction, according to research from
Interact Analysis. With greenfield investment projects costing $100
million or more, companies are exploring brownfield projects to
minimize development costs, increase operational efficiency and
improve the performance of existing facilities.
While brownfield investments come with limitations related to
building layout and existing equipment, the benefits often outweigh
these challenges. Redeveloping brownfield sites involves lower
development costs since infrastructure like roads, utilities, and
loading docks is already in place. This significantly reduces the
need for additional construction, permits, and architectural
involvement.
"Key factors to consider when selecting facilities for
brownfield projects include proximity to transportation routes and
urban areas, site contamination levels, and access to a skilled
workforce," added Cashman. "Companies, especially in the retail
sector, can convert underperforming stores into e-Commerce
fulfillment centers or ‘dark stores’ that offer ample space and are
located near populated areas."
Technology plays a crucial role in optimizing brownfield
warehouses, according to the report. Gartner states by 2028, 80% of
warehouses and distribution centers will deploy some form of
warehouse automation. Brownfield sites are particularly suited to
point solutions that automate specific workflows, such as mobile
robots and automated storage and retrieval systems (AS/RS), which
maximize storage density within a smaller footprint.
Warehouse execution system (WES) software is paramount at
brownfield sites, serving as the brain behind warehouse operations.
A WES optimizes order fulfillment processes, minimizes idle time,
maximizes resource utilization, and integrates old and new
automation technologies. This is especially important in smaller,
space-constrained brownfield facilities where every square foot
counts.
A knowledgeable WES partner like FORTNA works with companies to
determine inventory, throughput, service level agreements (SLA),
and other requirements. Advanced algorithms simulate different
types of equipment and technology to predict success in a
brownfield environment.
"By seamlessly integrating with automation technologies like
mobile robots and robotic arms, FORTNA optimizes workflows and
reduces manual intervention," concluded Cashman. "This is
particularly beneficial where space optimization is critical for
vertical storage and seamless order fulfillment."
One of the added benefits of redeveloping brownfields is
sustainability. By reusing existing land, companies avoid utilizing
additional resources. Automation technologies can incorporate
energy-saving designs to reduce consumption, enhancing the energy
efficiency of brownfield warehouses. Improved inventory management
and order fulfillment accuracy minimize waste and reduce the
environmental impact of excess inventory. Additionally, optimized
transportation routes and schedules reduce fuel consumption and
emissions.
The demand for adaptable, cost-effective, and efficient
warehousing solutions continues to evolve, making brownfield
initiatives a strategic imperative. Brownfield warehouses provide
flexibility and customization, aligning warehousing strategies with
evolving inventory management goals. With proper planning and
execution, brownfield warehouses can become significant sources of
storage solutions in the US in 2024 and beyond.
To access the full text of 'Navigating Warehouse Space
Challenges in 2024: Unlocking the Value of Brownfield Warehouses',
follow the link here. To learn more about FORTNA's brownfield
automation or WES capabilities, visit
https://www.fortna.com/insights-resources/high-density-storage-solutions-for-brownfield-facilities/.
About FORTNAFORTNA partners with the world’s
leading brands to transform omnichannel and parcel distribution
operations. Known world-wide for enabling companies to keep pace
with digital disruption and growth objectives, we design and
deliver solutions, powered by intelligent software, to optimize
fast, accurate and cost-effective order fulfillment and last mile
delivery. Our people, innovative approach and proprietary
algorithms and tools ensure optimal operations design and material
and information flow. We deliver exceptional value every day to our
customers with comprehensive services and products including
network strategy, distribution center operational design and
implementation, material handling automated equipment, robotics and
a comprehensive suite of lifecycle services. Visit
https://www.fortna.com/.
Media Contact: Cheryl FalkSVP Global Marketing
Communications and Demand GenerationFORTNA
Inc.cherylfalk@fortna.com